The bill, which has the support of the Pennsylvania School Boards Association, would honor existing obligations, but "stop the bleeding' for new hires by creating a hybrid plan with the best features of benefit and contribution plans. New employees would realize an amount equal to 1 percent of their final salary for every year they work. An employee's contribution would be reduced to 3.25 percent, from 7 percent, and vesting would be increased from five to 10 years.

Employers would contribute 2 percent, and all funds would be invested among a menu of options with the Pennsylvania Public School Employees' Retirement System (PSERS).

"This is not a Band-Aid approach. We can't just pretend this problem doesn't exist anymore," Grell said.

Increases in PSERS contributions have been on the minds of many school boards. Susquenita makes payments equalling 4.78 percent of its payroll to the fund, but that number is expected to rise to 34 percent by 2014-15.

For 2009-10, Susquenita's gross contribution was $600,000. Next year, that number will rise to $1 million and estimates are that it will be $5.4 million by 2014-15.

The state reimburses half of contributions, but all money has to be paid up front. The reason for the contribution increases is the downturn in investment markets and a negative return rate in 2007, according to PSERS.

Grell said PSERS has 279,000 active members, and is providing retirement benefits to 177,000 retirees.

The plan has $46 billion currently, but that repesents a decrease from $54 billion two years ago.

"We're not in jeopardy of not being able to pay the people relying on PSERS for their retirement, and not in jeopardy currently in the system when they retire," Grell said. "But, that is not going to be without some pain.'

Keller allowed Grell, a member of the PSERS board of directors, to explain the proposal, but he did address the board prior to Grell's remarks. He said H.B. 2135 wasn't the total answer, but he called it a step in the right direction.

"We all have to keep this in the back of our minds that this is coming upon us and we need to be a part of it. We can't kick that can down the road any further.'